The Tricky State of Inflation (2025)

This information post is related to Refs 17XX & 17XX Committing to long-term fiscal responsibility with a Capped & Stepped Supply schedule.

It is important when taking a risk to carefully weigh the risks of doing NOTHING!

First we must ask ourselves where the DOT token lies on the Hard Money Spectrum:

Data provided by Parity during the DOT RFP #1 - Crowdsourced Research Campaign estimates the Nominator & Validator selling behaviour based on CEX interactions near the time of reward receipt:


Yellow line - Suspected average of rewards sold

Here we see the suspected selling of Nominators/Validators (in USD) compared with Treasury spends in Yellow (loans and all assets leaving the treasury are counted as "spends" here)

DOT "Worth Selling" has had disastrous effects on Network Security:

With unlimited credit provided by 120M new DOT tokens every year we have seen little motivation to cut expenses or create new avenues for revenue generation.

On Oct. 10, 2024 DOT holders voted to reduce inflation to a fixed 120M DOT per year.

While this trend seems promising, it is less flattering when looking at All Time DOT Inflation.

The Blue Circle shows where the change to fixed inflation was made.

Instead of chasing the inflation horizon, it is sensible to commit to long-term fiscal responsibility with Capped & Stepped Supply.

Benefits include:

1. Urgent expense reductions
2. Urgent revenue generation
3. Store of value token utility
4. Investor certainty
5. Powerful industry meme of strong Holder Culture

Vote AYE on the Hard Pressure model and/or Soft Pressure model today.